Legal Question in Real Estate Law in Florida
Refusal by lender to qualify buyer
I have a signed contract to purchase a house. I had a loan application in before the end of the 30 days, as stipulated. The appraisal came in below the amount needed to receive this particular loan. (I was not advised that I could renegotiate based on a lower appraisal that the asking price.) The new loan terms dictated that I have four months worth of mortgage payments in reserve ($1,853.00 times four equals $7,412.00); I could not meet those terms and was, therefore, turned down by the lender.
The buyers are threatening to sue.
I have surrendered the binder ($1,000.00); they refuse to accept it.
What is my obligation and/or liability?
It's been told to me that I am going to lose, they will get a judgment against me and garnish my wife's salary as she is not the ''head of the household.''
Is this true and do I need to be concerned about the judgment and the garnishment of wages?
Thank you for your response, in advance.
3 Answers from Attorneys
Re: Refusal by lender to qualify buyer
A review of the contract is a necessary prerequisite to providing you with any meaningful advice. Generally, if the contract is subject to financing and you went ahead in good faith and did not obtain the financing the contract is then voidable and you are entitled to the return of your deposit money. I urge you to seek competent counsel to protect your interestss
Re: Refusal by lender to qualify buyer
I would need to review the contract for the sale and purchase of the home to give you any meaningful guidance. Generally under Florida law, if the contract is subject to securing financing, the seller cannot keep your deposit and has no viable legal claim against the buyer, if the lender rejects the loan request. Of course, there are questions regarding when you applied for financing, whether your application for financing was in line with the requirements of the contract, whether you did anything to hinder or cause the failure of the financing contingency, etc.
If the buyer is threatening to sue, you should seek the services of an attorney and not answers to vague questions over the internet. If you would like me to review your contract, please call me at 305-445-0937, and I will be happy to discuss it with you.
Re: Refusal by lender to qualify buyer
You should have an attorney review your contract. If I had to guess, it is subject to financing. You did what you were supposed to. Get your deposit back.
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